WTI - Positivism is getting stronger, where is the best entry price

Commodity Forecast / WTI (Futures) - Our Expectations

Earlier this week, light crude futures reached $ 70 a barrel for the first time since November 2014 as traders began to accrue renewal of US sanctions against Iran. If the restrictions in question enter into force, the likelihood of Iran (the third largest exporter in the world) experiencing export difficulties is increasing significantly and this will result in significantly less oil on the market. So far with the foundation, it looks ironic and in favor of the long positions. Let's look at the technique - D1.

The price of black gold is in the long-term upward trend since mid-2015 when it hit the total bottom of $ 26 a barrel. Currently, the tension between the US and Iran is disturbing the traders, and this is also reflected in the chart. In the last month, when we witnessed a massive attack on the west against Syria, the trend was "thinning" and accelerating upwards. The latest bullish momentum triggers a flagship formation upward, and the price is now correcting to breakthrough levels that match a few more criteria. Short cut diagonal, horizontal and 23.6% Fibonacci correction are available. 50 and 200SMA are beaded, but the price is far from the average. CCI50 remains over - trend remains in place.

SL: $66.00

Alternative Scenario: If the price goes back below the support area and stays there in several consecutive bars, the positive scenario will be spoiled and more likely to see a drop in oil.

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